Azeez joined UD Ibiza at the start of the season. His original deal would have seen him stay at the Spanish Second Division club until the summer of this year.
The 20-year-old made only 11 appearances for UD Ibiza, with ten of those coming in the Segunda Division.
Azeez, however, has struggled to get regular game time under his belt since last November.
Arsenal had also cut short Azeez’s loan spell last summer in Portsmouth due to a lack of game time.
Azeez, who previously represented Arsenal’s under-18 and under-21 teams, has made only one senior appearance for the North London club.
In confirming his release back to Arsenal, UD Ibiza said in a statement: “Miguel Azeez is no longer a UD Ibiza player." @Arsenal and UD Ibiza have reached an agreement to finish the loan that brought him to our club. From UD Ibiza, we wish him all the best for his professional career. Thank you, @MiguelAzeez! "
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